The world has been expecting this as the war in Ukraine moves into the injury time. But no one has predicted with high confidence that Russia would strike this early with its gas. Yes, Russian energy giant Gazprom has announced the suspension of natural gas supplies to the EU via the Nord Stream 1 pipeline, for an indefinite period, due to technical malfunctions.
Last week, I read a piece where Russia was worried that it had so much money that it needed to slow the appreciation of its currency, and the only way to do that was to buy other currencies. I even suggested buying Nigerian naira. Typically, because of sanctions, Russia’s balance of payment became exceedingly favorable (you export so much and import largely nothing) heating up the currency, ruble, which has appreciated in recent weeks.
With so much money in the bank, it now wants to do a killer: freeze export of gas to Germany and the broad EU indefinitely. Global leaders just finished a meeting with a plan to cap the price of Russian oil. Now that Russia is showing that it can live without even supplying hydrocarbons, a new playbook would be needed. This is a consequential move that can push Europe into recession, and Africa may not be spared. An adult leads to lead right now in our world – the global economy is at risk!
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Russian state-owned energy giant Gazprom announced Friday that it has “indefinitely” suspended all natural gas deliveries via its Nord Stream 1 pipeline, the key artery linking Russia and the European Union, citing equipment issues at one of its compressor stations.
The announcement appears to realize European fears that Russia intends to cut off gas on the pretext of maintenance problems, a possibility that has led Western countries to scramble to build up supplies ahead of winter.
Gazprom said in a statement Friday that the shutdown was caused by “malfunctions” detected on a turbine at the Portovaya compressor station. It did not provide a time frame for restarting supplies. Russia had halted flows on Wednesday, ostensibly for maintenance, raising anticipation that it intended to cut off supplies altogether.
Gazprom’s announcement comes just hours after G-7 finance ministers announced their plans to implement a price cap on Russian oil exports in an effort to sap President Vladimir Putin’s war funding.
Comment on Feed
Comment: I remember a man pointing out that Germany was too dependent on Russian. He was laughed at and ridiculed as he didn’t know anything about politics and international affairs.
Comment on1: Let’s wait to see what ‘Germany’ and the rest will do. You can’t tell me this phase was not anticipated at a point. Europe is a bloc. Russia is a single nation. Each have their advantages. I wouldn’t bet that a single country will easily out maneuver a determined group no matter the initial advantages the single guy would appear to wield coming into the battle.
My Response: I am not really worried on what happens in EU or Russia but Africa. If EU is forced to scramble for energy, it will price out many African countries that need energy in the global market. I did not post this because of any pity for Germany. Rather, Africa!
Comment 2: When two people fight, you separate them. And if one is a bully and won’t let the other be, then a stronger person contains the bully and puts the fight to an end. The fight just has to end one way or the other. That’s how we were raised as children. But what we have seen between Russia and Ukraine is that those who should have separated the two fighting or contained the bully rather took actions to lengthen the war.
Everyday this war is fought, irreplaceable human lives get lost. What will be the price of the winner of this war in the end? I hope it will compensate for the lost lives. Let the gas supplies be suspended and let the war bite into everyone’s skin- the fighters and those cheering them on from the sidelines. Maybe then, someone will have the common sense to show real leadership.
Comment 3: Well it is high time African Oil producing countries prioritize sister African countries in terms of energy. Europe will find a way out but African countries will have a very challenging year. Food production and energy must be prioritized by African leaders. The West needs to learn that although they have an edge over Russia in media ownership. The real economy is very different. Russia plays a key role in the world energy and nobody can deny that.
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Europe doesn’t really have leaders, just activists and cry babies. Most decisions are emotionally driven, and with inflated ego, they become confused on what to do next.
Well, we don’t need to always rope Africa in, it’s EU that Russia has issues with, and Russia never said it has issues with Africa; we need to separate these things. Too much propaganda in the world.
Anyone who cannot bear what is coming should surrender, since Putin cannot be removed by force, and the sanctions are no longer threatening the guy.
Somebody should start dialing a number, we have seen the capacity of the creatures masquerading as leaders to keep our world stable.
Funny creatures everywhere.